ether (CRYPTO: ETH) Cops are a challenge now Bitcoins (CRYPTO: BTC) Dominance in the crypto space.
What happened: According to a Bloomberg report, “Ethereum challenges Bitcoin’s dominance in the crypto world” as its one-month futures contract trades at a premium of 8.37% compared to its spot price. Bitcoin’s one-month futures contracts have a premium of only 6.58%.
This suggests that when compared to Bitcoin, Ether is enjoying increasing institutional acceptance and a higher level of bullish stance. The open interest in Ethereum contracts against Bitcoin has risen from below 0.1 in April to almost 0.3 due to the aforementioned institutional attention.
Why it matters: Ether appears to be still surfing the wave of its network adopting the London upgrade, which resulted in the network destroying thousands of coins every day.
While the Ethereum network, which is expected to burn over $ 5 billion in a year from now, is remarkable on its own, the real benefits of upgrading become apparent when the coin, after a future network upgrade, is off which is believed to take place next year is going to be deflationary.
Also read: Ethereum is less risky than other altcoins during this market slump: Santiment
Deflationary prospects spurred the bulls and drew institutional attention to ether.
This sentiment even sparked discussions that Ethereum could overtake Bitcoin’s market capitalization in the future, but – as we explain in a recent analysis – much more than just inflation should be taken into account when comparing the two coins.
Despite all of this, ether is apparently already a more popular investment choice than Bitcoin with crypto investors in Singapore.
Price action: Ethereum was trading at 47,939, up 1.60% over the past 24 hours, while Bitcoin was up 3.36% and traded at $ 3,232.
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